Koch Industrials gives its employees stock options for purposes of compensation. The company sets the exercise price equal to the market price on the grant date. The exercise price on all outstanding options is $30. There are 100,000 outstanding options as of the end of 2020. No options were exercised during the year. Kochs marginal tax rate is 20%. In year 2021, Koch had $10,000,000 net income and paid preferred stock dividends in the amount of $400,000. Further, they had 10,000,000 shares of common stock outstanding during the entire year. At the end of 2021, Kochs stock price was hovering around $50 per share. The average 2021 stock price was $70. REQUIRED: Assume that for tax purposes the plan is non-qualified. Koch Industrials records compensation expense based on the fair value of the options on its GAAP income statement. Assume BlackScholes option pricing model indicated that $1,500,000 in compensation expense should be recorded for Koch Industrials. Further assume that this would have been recorded over three years year 2020 $500,000 expense; year 2021 $500,000 expense; and year 2022 $500,000 expense. Calculate diluted EPS for Koch Industrials for 2021.